Frequently Asked Questions
General Questions
What is Veilnet?
A shielded vault protocol that brings privacy to EVM chains by keeping balances and transfers stateless while securing them with on-chain Merkle proofs.
Is Veilnet a mixer?
No. Mixers are generally single-use obfuscation tools. Veilnet is a persistent shielded ledger where you can hold and manage your portfolio privately.
How is it different from a shielded pool?
Traditional ZK shielded pools calculate proofs entirely client-side, which can be slow. Veilnet uses a centralized, secure cryptographic sequencer for state transitions, optimizing for speed and UX while maintaining security via Merkle proofs.
What chains does it support?
Currently Base and Ethereum. More EVM chains coming soon.
What assets are supported?
- ETH (native)
- USDC and other ERC-20 tokens
Technical Questions
Why a stateless execution layer?
A stateless layer ensures data remains secure and enables high-throughput computations without incurring on-chain gas costs for every transfer.
Why not only ZK?
ZK is used for verification (Merkle proofs), but secure stateless models are often better suited for shared private state and high-throughput computations.
What happens outside the smart contract?
State transitions, balance tracking, and tree generation happen in the off-chain shielded execution layer.
What happens onchain?
Verification of proofs and final settlement of assets happen on-chain via the smart contract.
How are funds secured?
Funds are held in the smart contract and can only be released through valid Merkle proofs signed by authorized parties. The sequencer cannot steal funds.
Does Veilnet use Zama fhEVM or Fhenix?
Veilnet is compatible with EVM chains like Base/Ethereum and uses core FHE ideas to develop its own encryption, but it is not running on Zama’s fhEVM or Fhenix’s FHE rollups.
User Questions
How are my funds tied to me?
Your shielded balance is tied to the wallet address you used to interact with the protocol. Losing access to that wallet means losing access to your funds.
Can someone see my balance?
No, your Veilnet balance is completely hidden from the public. Only you and the sequencer can see your balance.
Can someone link my wallet to my recipient?
No, internal transfers are private. External observers cannot see who you send money to.
Can I recover my funds if I lose my wallet?
No. Veilnet is non-custodial. If you lose access to your wallet, you lose access to your shielded balance. Always backup your private keys securely.
What are the risks?
- Smart contract risk: Potential vulnerabilities in the contract code
- Sequencer network downtime: Liveness risk affecting transaction processing
- User operational mistakes: Poor wallet hygiene leading to privacy leaks
- Centralization risk: Reliance on a centralized sequencer for liveness
Do I pay gas fees?
- Internal transfers: Zero gas fees (off-chain)
- Deposits: Yes, you pay gas to move funds on-chain
- Withdrawals: Yes, you pay gas to settle on-chain
How long do transfers take?
Internal transfers are instant (off-chain). Deposits and withdrawals are settled on-chain with normal blockchain confirmation times.
Privacy Questions
Is Veilnet completely private?
Veilnet provides strong privacy for balances and internal transfers, but deposits/withdrawals are always visible on-chain. For maximum privacy, practice good operational security (wallet hygiene, timing, amount obfuscation).
Can I be deanonymized?
Your privacy depends on:
- Good wallet hygiene (using different wallets for deposit/withdrawal)
- Not immediately withdrawing after depositing
- Using different amounts to avoid correlation
- Protecting your IP address (use VPN if needed)
What metadata can leak?
- Timing of deposits/withdrawals
- Amounts deposited/withdrawn
- IP address (if not using VPN)
- Wallet linking (if you reuse withdrawal addresses)
Is private bridging actually private?
Yes, but with caveats:
- The bridge entry and exit are on-chain (and thus visible)
- Volume correlation across chains can reveal information
- Use good operational security for maximum privacy
Support
I have more questions
Check the Glossary for technical terms, or visit the Veilnet GitHub for additional documentation.
How do I report a security issue?
Please report security vulnerabilities responsibly to the Veilnet team. Do not disclose vulnerabilities publicly until they have been addressed.
Where can I get help?
- Documentation: Read this site
- FAQ: You're reading it
- Community: Join the Veilnet community channels
- Support: Contact the Veilnet team